Gold Price in Saudi Market: Complete Analysis and Trends

The ounce price, specifically the troy ounce weighing 31.1035 grams, is a global benchmark for the value of raw gold and is used to price gold worldwide. In the context of the Saudi financial market, this price is a focal point of interest for investors and economic observers, as it clearly reflects the state of global markets and indicates the level of investor confidence in the global economy. The ounce price is converted globally from US dollars to Saudi Riyals according to the official exchange rate, given the fixed peg of the Riyal to the Dollar (1 USD ≈ 3.75 SAR). Prices are updated daily through local bank platforms, global financial websites, and price screens in retail shops. The importance of the ounce price in Saudi Arabia is highlighted for several key reasons: First, gold is considered a traditional means of hedging against inflation and currency fluctuations, especially during periods of global market disruptions or geopolitical tensions. Second, gold prices are part of the wealth calendar for individuals and companies, as they are used to evaluate reserves or as a safe investment option in investment portfolios. Third, the ounce price reflects changes in global supply and demand and is linked to other indicators such as oil prices, making it an important tool for monitoring macroeconomic health. Although there are no direct gold trading products in the Saudi Tadawul market, the reflections of the ounce price movement are evident in the behavior of Saudi investors, especially during economic crises or rising global inflation rates. The role of gold in the Saudi market continues as an investment haven, supported by the monetary stability of the Riyal, adding a strategic dimension to monitoring the ounce price for local investors.

The global gold market witnessed radical changes in 2024 and 2025, characterized by record increases in the ounce price, influenced by complex economic and geopolitical developments. According to Reuters reports, the price of a gold ounce approached $2,600 by the end of 2024, driven by increasing global risks and market expectations for easing monetary policies in major economies. As the world transitioned into 2025, the upward momentum for gold continued, with the ounce price surpassing $3,000 in the first quarter of the year, reaching unprecedented levels of $3,800 by late 2025. These historic figures reflect the growing investment demand for gold, particularly from central banks and financial institutions that have bolstered their gold reserves as a means to hedge against currency price fluctuations and rising government debts. In the Saudi market, these movements were directly reflected, with the ounce price reaching approximately 15,000 SAR at the end of 2024, stabilizing around 14,250 SAR in mid-2025, as the exchange rate of the Riyal against the Dollar remained fixed. It is noteworthy that limited changes in the Riyal's price against the Dollar made the increases in the ounce price clearly visible in the local market, despite some fluctuations resulting from temporary changes in the US Dollar price. Analysis of local bank data also showed that the price of 24-carat gold per gram rose rapidly during the same period, fully influenced by the global ounce movement. These figures indicate that Saudi investors have become more aware of the impact of global shifts on local gold prices, increasingly monitoring global indicators daily, with a growing use of real-time data and periodic reports to determine market trends.

The ounce price is influenced by a complex set of economic and political factors, making its movements a direct reflection of the global financial landscape. The first of these factors is the monetary policies of major central banks, such as the US Federal Reserve and the European Central Bank; when these banks decide to lower interest rates, the yield on cash assets decreases, prompting investors to seek safe alternatives like gold. The year 2024 witnessed widespread monetary easing following interest rate cuts in Europe and America, pushing gold prices to historic levels. Second, inflation is a crucial factor; investors turn to gold as a means to protect the purchasing power of their money when inflation rates rise, as seen in many advanced and emerging economies recently. Third, geopolitical tensions and international conflicts, such as the dispute in Ukraine and political uncertainty in the United States as presidential elections approach, have all enhanced the demand for gold as a safe haven. Fourth, changes in the price of the US Dollar, as gold movements are typically inversely related to the Dollar; when the Dollar weakens due to monetary policies or fiscal deficits, gold rises as a store of value. Fifth, the behavior of large investors, including central banks and global investment funds, as their trend towards buying gold increases demand and raises prices. Finally, sudden changes in stock and bond markets serve as an additional catalyst for shifting towards gold, especially in cases of recession or financial crises. In the Saudi market, these factors intersect with the stability of the Riyal and local saving trends, making precise monitoring of global variables essential for understanding the dynamics of the ounce price locally.

The relationship between the ounce price and the gram price is a pivotal issue for understanding how gold is priced in the Saudi market. One troy ounce is approximately equal to 31.1035 grams of pure gold and is used as a global basis for pricing gold in financial markets. In Saudi Arabia, the pricing of the gram (24-carat) is based on dividing the ounce price in dollars by 31.1 to obtain the gram price in dollars, then multiplying the result by the exchange rate of the dollar against the Riyal (approximately 3.75). For example, if the ounce price is $3,000, the gram price equals approximately $96.46 (3,000/31.1), which is roughly equivalent to 362 SAR per gram (96.46 × 3.75). These prices are updated daily through local banking websites and smartphone applications, allowing followers and buyers to know the latest movements. It is noteworthy that an increase in the ounce price automatically reflects on all gold weight measures, including grams, ounces, and kilograms, without exception. Gold traders in the local market benefit from this direct relationship in pricing gold products, whether bars or jewelry. This relationship also allows investors to track the cost of acquiring gold accurately and make their decisions based on global shifts. Conversely, it should be noted that there are local factors that may add slight differences in the gram price, such as manufacturing fees, taxes, and local charges, but the foundation remains linked to the global ounce price. The importance of this relationship for Saudi investors lies in facilitating price comparisons and the ability to monitor the impact of global market movements on the local market in real-time.

Gold occupies a central position within the precious metals sector, which also includes metals such as silver, platinum, and palladium. This sector is globally recognized as a traditional haven for investors during times of economic uncertainty or geopolitical disturbances. Gold outperforms other precious metals in terms of market value and liquidity, with its circulating reserves estimated in thousands of metric tons, held by central banks as a key part of their cash reserves. In Saudi Arabia, despite the absence of major gold mining companies listed on the stock exchange, gold holds a prominent place in investment culture and is relied upon as a tool for hedging and diversifying investment portfolios. Gold is viewed in the local market as an alternative to traditional assets such as stocks and real estate, especially during periods of economic volatility. From a regulatory perspective, the Saudi market has not seen significant developments in financial products linked to gold compared to some Western markets, yet recent years have witnessed the launch of new products such as gold-backed certificates and sukuk, and gold murabaha funds, which provide investors with more flexible options to participate in price movements of the metal. Globally, gold competes with silver, platinum, and palladium as alternative investment tools, yet the demand for gold remains the highest due to its relative stability and long history of value retention. Additionally, gold serves as a fundamental reference for pricing currencies and commodities and is used in assessing the financial statements of countries and companies. Given these factors, the precious metals sector, led by gold, remains a central focus for capital movements, reflecting the health of both the global and local economies.

Despite the absence of direct trading of gold as a commodity or financial instrument in the Saudi Tadawul market, the movements of the global ounce price play an indirect role in shaping investor behavior and local investment trends. When the ounce price rises, investor concerns about economic volatility increase, prompting some to shift part of their investments into gold as a safe haven or into gold-backed financial products such as gold murabaha certificates offered by some local banks. Additionally, rising gold prices often reflect a turbulent global economic environment, which may impact the performance of economic sectors in Saudi Arabia, especially those linked to the economic cycle such as construction and real estate. For instance, when the world experiences a surge in gold prices due to declining confidence in stocks or risky assets, local demand for building materials may slow down, indirectly affecting companies like Hail Cement Company (3001). Conversely, if global markets experience a wave of optimism and rising risky assets, gold may decline, and other economic sectors may thrive. On the other hand, Saudi investors have become more aware of the importance of diversifying their investment portfolios and have begun to treat gold as an integral part of their hedging strategies, especially with the availability of new investment products such as local gold funds and exchange-traded funds (ETFs) linked to gold in global markets. Overall, the ounce price serves as an important indicator of market sentiment, and monitoring it helps in understanding the dynamics of capital within the Saudi financial market.

The Saudi market has seen significant developments in investment products linked to gold in recent years, responding to rising local and global demand for this precious metal. Among the most notable products are gold bank certificates and sukuk, which allow investors to own specific quantities of gold virtually without the need to physically store it. Some banks have also launched gold-backed murabaha funds, enabling clients to invest in gold according to Islamic law, with the ability to buy and sell electronically at prices close to the global ounce price. Additionally, exchange-traded funds (ETFs) linked to gold have emerged in global markets, which Saudi investors can access through international brokers, providing opportunities to diversify their investment portfolios without the need to purchase physical gold. These products compete with traditional alternatives such as buying bars and jewelry from local gold shops, which remain widely popular among individual investors, especially during crises. On the other hand, some asset management companies and real estate investment funds include gold among their assets as part of their diversification strategy. It is noteworthy that these developments have come in response to changes in investor behavior and their increasing needs for hedging and risk diversification. They have also contributed to enhancing transparency and facilitating access to global ounce prices in real-time. With ongoing global market fluctuations, it is expected that investment products linked to gold will continue to grow in the Saudi market, alongside the evolution of laws and regulations governing this sector.

The period between 2024 and 2025 was marked by radical changes in the global economic landscape, which directly reflected on the movements of the ounce price. Among the most significant developments was the trend of major central banks, such as the US Federal Reserve and the European Central Bank, towards easing monetary policies that included lowering interest rates and injecting additional liquidity into the markets, which diminished the attractiveness of cash assets and drove investors towards gold. Ongoing geopolitical tensions, particularly in Europe with the escalation of the Ukrainian conflict, and growing fears of regional crises, have reinforced gold's status as a safe haven. On the other hand, high inflation waves were witnessed in major economies, prompting many central banks to increase their gold reserves unprecedentedly; reports from the World Gold Council indicated a rise in net gold purchases by central banks in 2025, contributing to pushing prices to historic levels. Additionally, the underperformance of some global stock markets and increased volatility in bond and currency markets led to heightened investment demand for gold and related ETFs. The demand was not limited to financial institutions; individual investors also increased their investments in gold through electronic products and new investment funds. All these factors made the period of 2024-2025 a turning point in gold's history, where the ounce price surpassed $3,800 for the first time, solidifying gold's position as a store of value in times of crises. In the Saudi market, these developments were supported by daily monitoring from banks and financial institutions, contributing to increased investment awareness regarding the importance of tracking global factors affecting the ounce price.

The relationship between global gold prices and the ounce price in Saudi Arabia is direct and close, due to the peg of the Saudi Riyal to the US Dollar under a fixed exchange rate system. When the ounce price moves globally in dollars, it immediately reflects on the local market after converting the price according to the official exchange rate (1 USD ≈ 3.75 SAR). This peg provides Saudi investors with high transparency in tracking real-time prices of the ounce and gram, reducing the impact of local currency fluctuations compared to other markets. For example, if the global ounce price rises by 10% within a month, the ounce price in Riyals will rise by approximately the same percentage, except for slight changes resulting from local commissions or fees. It is noteworthy that the stability of the exchange rate in Saudi Arabia has made gold a reliable hedging tool, as the value of gold investments is not affected by fluctuations in the local currency. Additionally, local markets rely on global price bulletins published by major exchanges such as New York and London, which are updated in real-time through Saudi banking websites and specialized financial sites. Conversely, some temporary pricing discrepancies may appear between the local and global markets due to factors such as manufacturing fees, taxes, or local supply and demand differences, but they remain limited compared to global price movements. This explains why the ounce price in Saudi Arabia remains a true reflection of global market movements, allowing local investors to keep up with the latest developments without the need for complex foreign exchange monitoring.

Although the ounce price does not directly affect specific company stocks in the Saudi market, its movements reflect macroeconomic dynamics and indirectly impact some vital sectors. For instance, a rising gold price is often an indicator of increased global risks or declining confidence in risky assets, which may lead to a slowdown in sectors linked to the economic cycle such as real estate and construction. Companies like Hail Cement Company (3001) primarily depend on local demand for infrastructure projects; however, global economic slowdowns or rising inflation rates may reflect on investment levels in these sectors. Conversely, these companies may benefit from eased monetary policies and lower interest rates, which are the same factors supporting rising gold prices, creating a complex relationship between gold movements and the performance of economic sectors. On the other hand, rising ounce prices increase investor interest in alternative financial products such as gold funds and sukuk, prompting banks and financial institutions to develop new investment products that meet the growing demand for hedging and investment diversification. Additionally, rising gold prices enhance the importance of the banking sector in providing innovative investment solutions and encourage increased long-term savings. In summary, the ounce price serves as an important indicator for forecasting trends in the Saudi economy and is a key reference in evaluating the performance of various economic sectors amid global changes.

Global gold mining companies play a crucial role in the dynamics of the gold market and the formation of ounce price movements on a global scale. Among the most prominent of these companies are Canadian Barrick Gold and American Newmont, along with other major companies listed on the New York and Toronto exchanges. The movements of these companies' stock prices are based on fluctuations in the ounce price, as their profits and revenues rise with increasing gold prices and decline when prices fall. Although there are no major gold mining companies listed in the Saudi market, local investors closely monitor the performance of these global companies and use them as additional indicators to understand market movements. Additionally, some Saudi or regional investment funds invest in the shares of these companies as part of their geographic and sectoral diversification strategies. Changes in the production and costs of these companies affect the global gold supply and, consequently, the ounce price itself; for example, an announcement by a major company about production cuts due to operational issues or rising costs can drive global prices up. Furthermore, gold mining companies compete with alternative investment products such as ETFs and gold sukuk, creating competition for attracting investment capital. It is noted that changes in international regulations or shifts in taxes and the regulatory environment in producing countries also affect production costs and supply, reflecting on the final ounce price. In the Saudi market, monitoring the performance of these companies remains part of advanced investors' strategies, despite the absence of direct local products linked to them.

The Saudi market offers several modern and reliable means to track the ounce price in real-time and accurately, helping investors and individuals make decisions based on updated data. One of these means is local financial websites such as 'Argaam' and 'Al-Eqtisadiah,' which publish daily and hourly updates on the movements of the ounce and the price of grams across various carats. Many Saudi banks also provide electronic applications displaying real-time gold prices, with the ability to convert between currencies and accurately calculate purchase or sale costs. Additionally, global platforms like 'Bloomberg' and 'Reuters' offer real-time transmission of ounce prices and comprehensive coverage of news and reports affecting the market. Global news agencies are a primary source for tracking immediate developments, especially during periods of sharp fluctuations. On the other hand, the Saudi Arabian Monetary Authority (SAMA) and the central bank issue annual and monthly reports that include gold reserve values and monetary supply, allowing analysts to gain a deeper understanding of general trends. There are also interactive electronic tools that enable users to monitor real-time prices, calculate purity differences, and track local fees associated with buying or selling. These methods are gaining increasing importance amid the accelerating pace of global changes and the rising demand for accurate and up-to-date information. Ultimately, these tools allow investors in Saudi Arabia to easily monitor ounce movements and understand their implications for the local market without resorting to complex external sources.

Gold, particularly the ounce price, is a fundamental element in diversifying investment portfolios, whether for individual investors or institutions in Saudi Arabia. Gold is characterized by unique properties, as it often moves inversely to stock and bond markets, making it an effective tool for reducing overall portfolio risks. During periods of volatility or financial crises, demand for gold as a safe haven rises, contributing to relative stability in the total value of assets. Global investment literature typically recommends that gold should constitute between 5% and 10% of a portfolio, a defensive ratio that increases during times of economic uncertainty. In the Saudi context, interest in gold has grown with the escalation of global crises and increasing investment awareness regarding the importance of diversifying away from traditional assets such as stocks and real estate. The development of investment products such as local gold funds and sukuk has also provided greater flexibility in allocating a portion of the portfolio to gold without the need to purchase the physical metal. Investors in Saudi Arabia have become more familiar with the importance of monitoring global gold indicators and using them as a hedge against inflation and currency fluctuations. Additionally, the continued peg between the Riyal and the Dollar makes gold a relatively stable investment compared to other markets experiencing currency volatility. Ultimately, gold represents an important pillar for diversification strategy and contributes to enhancing long-term financial stability for Saudi investors.

There are multiple factors that investors and analysts should monitor to accurately predict ounce price movements, given their direct and indirect impact on market dynamics. First, the movement of the US Dollar and interest rates in the US and Europe represent key indicators; when interest rates rise or the Dollar strengthens, gold tends to decline, and vice versa. Second, global inflation rates, especially in major economies, where gold is considered a primary hedge against the erosion of money's purchasing power. Third, major geopolitical developments, such as military conflicts or political crises, which typically enhance demand for gold as a safe haven. Fourth, trends in central bank purchases and sales worldwide, which can be tracked through monthly reports issued by the World Gold Council. Fifth, the performance of stock and bond markets, where investors tend to shift to gold in the event of declining risky assets. Sixth, changes in gold supply resulting from production by global mining companies, as strikes or natural disasters can affect global supplies. Finally, macroeconomic indicators such as economic growth data, unemployment rates, and global capital movements should be monitored, as these indicators reflect the markets' ability to face challenges and determine the need for gold hedging. In the Saudi market, monitoring these factors remains vital for understanding ounce price movements, although accurately predicting future movements remains challenging due to the interplay of influencing factors and their complexities.

The ounce price, both globally and in the Saudi market, faces a range of challenges and opportunities that will determine its trends in the near to medium term. Among the most significant challenges are the ongoing global economic fluctuations, particularly with the difficulty of predicting the trajectory of major central banks' monetary policies and their impact on interest rates and liquidity. Additionally, high levels of government debt and geopolitical tensions present an added challenge, as they increase uncertainty and drive investors to seek safe havens like gold. At the same time, the stability of the Saudi Riyal exchange rate presents an opportunity for local investors to benefit from global gold movements without bearing currency volatility risks. Furthermore, the development of local financial products linked to gold, such as murabaha funds and gold sukuk, opens new horizons for diversifying investments and increasing transparency. On the other hand, technological innovations in commodity markets may enhance trading efficiency and reduce costs, making gold a more attractive investment tool. With increasing investment awareness in Saudi Arabia, demand for gold-linked products is expected to rise, especially amid unstable global economic conditions. However, the risks associated with global market fluctuations, changes in regulatory policies, and local supply and demand factors remain elements to consider when evaluating future opportunities for the ounce price in Saudi Arabia. Ultimately, the ounce price represents a central focus in hedging and investment diversification strategies for Saudi investors, necessitating continuous monitoring of local and global changes affecting it.